Lithium Ion Battery Price Reduction

Let s tackle metals first.

Lithium ion battery price reduction.

As early as 2023 says ihs. Price trend cost structure. The manufacturing industry suffered and is still suffering from oversupply. By 2023 average prices will be close to 100 kwh according to our latest forecast.

The cost of storage has already fallen steeply and lithium ion battery prices are set to continue on that trajectory according to market analysis outfit ihs markit. A lithium ion battery or li ion battery abbreviated as lib is a type of rechargeable battery lithium ion batteries are commonly used for portable electronics and electric vehicles and are growing in popularity for military and aerospace applications. For instance the battery pack price for ev is stated cost per kilowatt hour kwh. Depending on the chemistry lithium ion batteries are sensitive to lithium nickel cobalt and aluminum prices.

There are some pretty optimistic numbers coming out from analysts for the cost of lithium ion batteries in the not to distant future. Over the past decade the battery pack price has been driven down to 156 per kwh compared to 1100 per kwh in 2010 according to cnbc news. The experience curve for li ion ev batteries shows a rapid rate of price reduction. Battery prices which were above 1 100 per kilowatt hour in 2010 have fallen 87 in real terms to 156 kwh in 2019.

This more than 85 reduction is due to a surge in li ion battery production and being popular in utility scale. Stanley whittingham rachid. Element in lithium ion batteries. A lithium ion battery cell for a smartphone costs the device oem somewhere between 2 to 4 depending on its capacity and other design attributes.

It constitutes about 1 to 2 of the entire cost of the mobile device. In contrast a lithium ion battery for an electric vehicle can range between 7 000 and 20 000. The two main arguments that battery prices will increase are based on sensitivity to underlying metal prices and the desire of battery manufacturers to increase their margins. A 56 total reduction in cost per kwh of the battery pack massive.

1 june 20 2017 executive summary 1 oversupply is depressing battery prices passenger ev sales were lower than expected in 2011 h1 2015 meaning demand for lithium ion batteries was low. It is looking likely that they will drop from today s 500 kwhr to below 200 kwhr by 2020 and 160 kwhr by 2025. Integrating high levels of renewable penetration will require long duration storage that lithium ion battery technology may not be able to meet due to.